TARP | The Rational Walk

Buffett “Feels Poorer” Based on Terms of Cadbury Deal

In a CNBC interview this morning prior to the special meeting of Berkshire Hathaway shareholders, Warren Buffett comments on a number of topics including the Obama Administration’s proposed bank tax. Mr. Buffett does not believe that banks are making “obscene profits” and companies that have already repaid TARP funds should not be forced to effectively pay for bailouts at Fannie Mae and Freddie Mac. Read this article for more details and to view the video.

American Express Chairman on TARP Repayment and New Regulations

In a recent interview, American Express Chairman Ken Chenault offers his views on the overall economy, his company’s recent repayment of TARP funds, and proposed consumer protection regulations currently under discussion in Washington. View the video in this post.

US Bancorp CEO on TARP Repayment

CNBC interviewed US Bancorp CEO Richard Davis regarding his bank’s repayment of TARP funds. In addition, Mr. Davis talks about retiring the ten year warrants that were issued as part of the TARP arrangement and projects that US Bancorp will not need to issue additional FDIC insured debt.

Kansas City Fed President Hoenig Offers Alternative to “Too Big to Fail”

At a time when most government officials in the executive branch and at the Federal Reserve continue to support the “bail out” approach, Thomas M. Hoenig, President of the Kansas City Federal Reserve bank and a voting member of the Federal Open Market Committee, has put forward an alternative prescription to deal with the troubled financial system. The text of Mr. Hoenig’s recent testimony before the Joint Economic Committee of the United States Congress requires close attention. Read this article for more details.

Goldman Sachs Seeks a TARP Free Future

While the strong first quarter results posted by Goldman Sachs on Monday seemed to surprise most observers, it really comes as no surprise that the firm is now seeking to free itself from the shackles of the TARP financing that it was essentially forced to accept in October 2008. The $5 billion common stock offering announced today will allow Goldman Sachs to retire part of the TARP funding, subject to government approval.

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